Tax Type 11 for MN activated with TUB 050 incorrect in BSI interface

[Former Member]

We are having issues with MN TT11, TT15, and TT89 after applying TUBS 046-051. When I run a batch test I receive the message stating that the formula for TT11 is undefined for MN. In addition, when SAP receives the results back from the calculation, it records the taxable wage base as $7000 for TT11, TT15, and TT86 which is equal to the FED TT10 wage base. The BSI interface in this case is missing the ADC line to let the system know you are starting a new tax and it looks like this:

ADC TC: MN NR: 0 RP: 0

HUD TT: 10 FN: 01 PW: 7650.32 HW: 80.00 MS: 02 NE: 04

ADD TE: 0 RN: 0 PW: 1.00

SDC SM: 9 BW: 7023.86 ADC TC: MN NR: 0 RP: 0

HUD TT: 11 FN: 01 PW: 7650.32 HW: 80.00 MS: 02 NE: 04

ADD TE: 0 RN: 0 PW: 1.00

SDC SM: 9 BW: 7023.86

It should look like this:

ADC TC: MN NR: 0 RP: 0

HUD TT: 10 FN: 01 PW: 7650.32 HW: 80.00 MS: 02 NE: 04

ADD TE: 0 RN: 0 PW: 1.00

SDC SM: 9 BW: 7023.86 ADC TC: MN NR: 0 RP: 0

ADC TC: MN NR: 0 RP: 0

HUD TT: 11 FN: 01 PW: 7650.32 HW: 80.00 MS: 02 NE: 04

ADD TE: 0 RN: 0 PW: 1.00

SDC SM: 9 BW: 7023.86

Has anyone run into this problem?

Thanks, Michael

[former_member182083]

Hello Michael,

What you are experiencing in your system is standard behaviour of it. Kindly find the explanation below

About Tax Type 11:

As you may know, in BSI Tax Factory script we have a parameter Year Wages (YW:), that is nothing else than the total of taxable wages for this tax type/tax authority, or in other words wage type /7** from TCRT table for the corresponding tax company/tax authority/tax type.

For tax type 11, SAP payroll sends to BSI Tax Factory Script the year wages of tax type 10 - Federal.

What happens here: if you configure tax type 11 in tax model after employee reaches ceiling for tax type 10 Federal, payroll will send to BSI Year Wages of $ 7,000. As tax type 11 is a self-adjusted tax type, BSI will calculate the tax amount for $ 7,000, which is the ceiling for tax type 11 as well. If you force a retro from Period 01, you will send the Year Wages according to each payroll period, and, therefore, wage type /711 will be calculated accordingly.

This is the way that the SAP and BSI systems were designed to work.

I hope it clarifies.

With Regards,

S.Karthik

[Former Member]

S, Karthik,

Thank you for the information that you have provided however this does not answer the question. If you examine the BSI interface example you will see that when SAP builds the section for TT11 it fails to include the appropriate the ADC separator that indicates a new tax type and consequently the taxable amounts stored for tax type 15 and 89 both are incorrect. Please see the SAP results after the BSI calculation below. The taxable wage base for these tax types should be 28,000 not 7,000.

Regular income taxes

Tax authority FED Federal T070

Tax Category Tax.inc Tax-free Inc.Declare Tax.earning Tax

01 Withholding Tax (REG) 7761.94 1155.37 6606.57 6606.57 1128.88

03 Employee Social Security Tax (REG) 7761.94 417.29 7344.65 7344.65 308.48

04 Employer Social Security Tax (REG) 7761.94 417.29 7344.65 7344.65 455.37

05 Employee Medicare Tax (REG) 7761.94 417.29 7344.65 7344.65 106.50

06 Employer Medicare Tax (REG) 7761.94 417.29 7344.65 7344.65 106.50

10 Employer Unemployment Tax (REG) 7708.01 417.29 7290.72 7000.00 42.00

Tax authority MN Minnesota T070

Tax Category Tax.inc Tax-free Inc.Declare Tax.earning Tax

01 Withholding Tax (REG) 7761.94 1155.37 6606.57 6606.57 389.40

10 Employer Unemployment Tax (REG) 7708.01 57.69 7650.32 7650.32 352.68

11 Employer Debt Repayment Tax (REG) 7708.01 57.69 7650.32 7000.00 21.00

15 Er Job Devmt Assessmt Tx (REG) 7708.01 57.69 7650.32 7000.00 2.27

36 Workforce Enhancement Fee (REG) 7708.01 57.69 7650.32 7650.32 7.65

89 Ui Interest Assessment Fee (REG) 7708.01 57.69 7650.32 7000.00 0.09

Thank you, Michael

[Former Member]

I have determined that the missing ADC was a cut and paste error. I have also confirmed with BSI that the issue with the wage base is on their side and will be addressed with either TUBs or point release. Sorry for any confusion.

Regards, Michael

[Former Member]

It is my understanding that BSI has released the fix for MN tax types 11, 15, and 89 with TF90F2. Does anyone know when SAP is expected to certify this release so that it will be available for their customers? Thanks, Michael

Could someone please shed some light on this question? Thanks, Michael

Edited by: Michael Nunnally on Feb 2, 2012 8:35 PM Can someone please give me an idea when this version of BSI will be certified by SAP?